Bank Nifty Hits Record High of 57,263 – HDFC Bank, Axis Bank Lead the Rally
The Indian stock market witnessed a strong rally on June 26, 2025, as Bank Nifty hit a record high of 57,263.45, led by a surge in private bank stocks. Among the biggest gainers were HDFC Bank and Axis Bank, both of which saw their shares rise up to 2% during the session.
🔺 What Drove the Rally?
The rally in bank stocks is driven by strong investor confidence, positive macroeconomic signals, and heavy buying interest in large private banks.
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HDFC Bank shares hit a lifetime high of ₹2,027, continuing their winning streak for the third day in a row.
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Axis Bank rose by 1.5% and AU Small Finance Bank gained over 1.7%.
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ICICI Bank, IndusInd Bank, Canara Bank, Kotak Mahindra Bank, and PNB also saw modest gains.
Meanwhile, SBI, Federal Bank, and IDFC First Bank traded slightly in the red, going against the overall trend.
📈 Expert Opinions on Bank Nifty
Experts believe this upward momentum in Bank Nifty is likely to continue.
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Chandan Taparia of Motilal Oswal expects Bank Nifty to touch 58,000 in the next 2-3 weeks, provided it holds above the support level of 56,250.
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Ajay Bagga, an independent market analyst, credits India’s strong macroeconomic performance and the Reserve Bank of India’s (RBI) efforts as major growth drivers. Falling inflation, improved consumer spending, and policy support from the RBI are creating a favorable environment for credit growth.
💸 RBI’s Role in the Banking Boom
The RBI’s recent monetary actions have played a big role in lifting investor confidence:
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100 bps repo rate cuts in 2025 (25 bps in February, 25 bps in April, 50 bps in June)
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100 bps CRR cut
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A $10 billion USD/INR swap that added long-term liquidity
This has significantly improved credit availability and supported the financial system, boosting bank profitability expectations.
📊 Bank Nifty’s Strong Performance in 2025
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Bank Nifty has outperformed the Nifty 50 so far in 2025, gaining nearly 12% compared to Nifty’s 8% rise.
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Analysts like Sunny Agrawal from SBI Securities point to HDFC Bank and ICICI Bank as the primary drivers, accounting for nearly 50% of Bank Nifty's weight.
Even though banks may face some pressure on their margins (NIMs) in Q1 FY26, they are expected to finish FY26 on a strong note.
📉 What’s Next?
According to Ravi Singh of Religare Broking, if Bank Nifty stays above 56,800, it could climb towards the 57,800–58,200 range in the short term. Key support zones lie between 56,200–56,500, with 57,200 being the next resistance level.
Traders are advised to follow a "Buy on Dips" strategy as the outlook remains positive.
📌 Nifty Financial Services Also at Record High
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The Nifty Financial Services index also saw a jump of nearly 1%, reaching a new high of 27,144.
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Top gainers included ICICI Prudential Life, Jio Financial Services, Shriram Finance, and Bajaj Finance, all rising over 2%.
🔚 Final Thoughts
The rally in Bank Nifty is a clear sign of investor optimism in India's financial sector. With RBI support, stable macro conditions, and rising credit demand, banks are likely to stay strong in the near future. However, investors should stay updated and consult financial advisors before making investment decisions.
Reference from - https://www.moneycontrol.com/news/business/markets/bank-nifty-hits-fresh-record-high-of-57-070-hdfc-bank-axis-bank-shares-jump-over-1-13181574.html